At a glance
PBSE charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $29.9M in assets, the 8th largest of that group. Over the past year it returned +7.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
PGIM S&P 500 Buffer 20 ETF - September (PBSE) holds customized options on the SPDR S&P 500 ETF Trust (SPY). It aims to absorb the first 20% of SPY's price losses over each September-to-August period in exchange for a cap on gains. Its 0.50% expense ratio is the lowest of eight buffer funds compared here. It is also the smallest, at $29.9 million as of July 31, 2026, and it gives up SPY's dividends.
Price history
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PBSE +7.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PBSE official prospectus, to Dec 31, 2025 | — | +10.66% | — | — | — | +10.53% |
| PBSE price data to Oct 27, 2026 | +7.0% | +7.9% | — | — | — | +9.7% |
- Over the year to Oct 27, 2026, PBSE returned +7.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.0%); its best was 2025 (+11.0%).
- The deepest fall in its price history was 8.4% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 2, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.0% | — |
| 2025 | +11.0% | +10.66% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $4.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.47%, +0.38%, +0.74%.
How it works
PBSE is an actively managed ETF, and it owns no stocks directly. Almost all of its assets go into FLEX Options on the State Street SPDR S&P 500 ETF Trust (SPY). SPY is a unit investment trust that holds S&P 500 stocks in proportion to their weight in the index. FLEX Options are exchange-traded contracts with customizable terms that fix a price at which SPY can be bought or sold on a set date. Options made up 99.53% of net assets as of July 31, 2026. Returns follow SPY's price, not its dividends.
Over each one-year “target outcome period,” the options are designed to match SPY's price gain up to a cap and absorb the first 20% of its price loss. Losses beyond 20% pass through one-for-one: if SPY fell 25%, the fund would aim to lose about 5% before fees. For September 1, 2025 through August 31, 2026, the cap was 10.43% before fees. After the 0.50% management fee, the cap was 9.93% and the buffer 19.5%.
Each new period starts with a fresh set of options. The 20% buffer stays fixed, but the cap is reset each time based on market conditions. The options can be exercised only on the period's last day, so the targets apply only to shares held for the full period. Investing midway or exiting early can produce very different results, and nothing is guaranteed.
What it really costs
- PBSE charges 0.5% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PBSE | $51 | $160 | $280 | $628 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
It stays tied to SPY's price while aiming to absorb the first 20% of losses over each one-year period, in exchange for capped gains and no dividends.
PBSE launched on May 14, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its worst (and only full) calendar year, 2025, returned 10.66%. Its deepest drop was 8.4%, from February 19 to April 8, 2025. It made back that loss by June 2, 2025, about 1.8 months later. The full buffer applies only to shares held for a complete September-to-August period, so cashing out in a slump could produce results far from the 20% buffer.
PBSE has paid no distributions, and its returns exclude SPY's dividends, so any spending cash would have to come from selling shares. It charges 0.50% a year, below the 0.86% average of seven similar buffer funds. The SEC's standard example puts costs at $51 on $10,000 in the first year and $628 over 10 years. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 price exposure with a 20% buffer on SPY losses and can hold through each full September-to-August outcome period.
- Cost-conscious buffer-fund investors: its 0.50% expense ratio is well below the 0.86% average of seven similar buffer funds.
- Those willing to give up some gains for smaller swings: one-year volatility was 4.5% and beta (market sensitivity) 0.31 as of October 27, 2026.
Look elsewhere if
- Anyone needing income from this holding: PBSE has paid no distributions, and its returns exclude the dividends paid by the stocks SPY holds.
- Investors who want full stock-market gains: the cap for the September 2025–August 2026 period was 9.93% after the management fee.
- Investors who may need to cash out mid-period or invest partway through: the 20% buffer and cap fully apply only to full-period holders.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBSE this fund | 0.5% | $29.9M | +7.9% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is PBSE good for retirement?
It may suit retirees who want some S&P 500 exposure with a cushion against moderate drops, but it has clear trade-offs. PBSE launched in May 2024, so it has no record through a deep bear market like 2008 or 2022. Its largest decline was 8.4%, from February 19 to April 8, 2025, and it recovered by June 2, 2025. It pays no income and caps gains. Its 7.9% one-year return through October 27, 2026 ranked last among eight similar buffer funds.
How does the PBSE 20% buffer work?
PBSE aims to absorb the first 20% of price losses in the State Street SPDR S&P 500 ETF Trust (SPY) over each one-year outcome period, which runs from September 1 to August 31. After the 0.50% management fee, the prospectus puts the buffer at 19.5%. Losses beyond 20% pass through one-for-one: if SPY fell 25%, the fund would aim to lose about 5% before fees. It does not protect your original investment, and the full buffer applies only to shares held for the entire period.
What is the PBSE upside cap?
PBSE's cap was 10.43% before fees, or 9.93% after its 0.50% management fee, for the outcome period from September 1, 2025 through August 31, 2026. That was the most a full-period holder could earn from SPY's price gains. The cap resets each September based on market conditions, so it changes from one period to the next while the 20% buffer stays the same. A new period with a new cap began after August 31, 2026. Its terms are worth checking with PGIM before investing.
Does PBSE pay dividends?
No. PBSE has not paid distributions, so it has no yield. The fund owns options on the State Street SPDR S&P 500 ETF Trust (SPY), not the stocks, and its results track SPY's share price only. That means holders give up the dividends that S&P 500 companies pay, which make up a meaningful part of long-run stock returns. Retirees who need regular cash would have to sell shares or rely on other holdings for income.
What's the difference between PBSE and BUFR?
PBSE is much cheaper and much smaller. It charges 0.50% a year, against 0.95% for the FT Vest Laddered Buffer ETF (BUFR). PBSE had $29.9 million in net assets as of July 31, 2026; BUFR had about $10.5 billion as of August 31, 2026. BUFR returned 11.6% over the year to October 27, 2026, versus 7.9% for PBSE. As its name says, BUFR is laddered, a design that typically spreads money across buffer periods that start in different months. PBSE resets once a year in September.